Financial Development of China vs Hong Kong
Introduction
Hong Kong became one of the first areas of Asia to industrialize. Economic liberalism vs. China, the second economy in the world. As for its service economy, Hong Kong has established itself as a regional storage and transport port, both importing and re -exporting for the Asian country. Much of the negotiations are carried out through Hong Kong and in terms of aspects that speak of their economic progress, they can be mentioned in a chronological order;GDP generator, its external marketing, the direction of its marketing, composition of said address and the commercial balance they have managed to maintain.
Developing
From 1970 to 1998, the increase in the development of the economy in Hong Kong was observed, which was affected due to the arrival of the Asian crisis in 1998 and affected the GDP of the Hongkonesa region. ‘’ Economies from Southeast Asia maintained high interest rates that attracted foreign investors. As a result, these economies received a large tributary of money and tested an increase in assets prices. At the same time, the regional economies of Thailand, Malaysia, Indonesia, Singapore and South Korea experienced high growth rate: from 8 to 12% of GDP in the late 1980s and early 90s of the 90s.
This achievement was held by financial institutions, including the International Monetary Fund and the World Bank ’’ ’. César Valle Guevaraun Dilema which became an obstacle to Hong Kong and that so far remains in force. To this is added the intervention by an economic council in charge of determining the exchange rate. On the contrary, there are currently two proposals directly to promote the future economy of the region. One of them is based on investment with respect to infrastructure, development and research, which would not depend on government participation and in turn is linked to the second alternative.
In contrast, Hong Kong in terms of tax restriction issues, faces a series of limitations, but is denied to the possibility of raising a support bond with the Chinese Central Government. The workforce in the territory is formed by 3.5 million people in 2003. The employment structure corresponds to the importance of the services sector, as it can be seen in Table 1, in 2002, 90% of the employed population was in this sector, a figure that grew from 62% in 1985. In this same picture we can see another problem of Hong Kong’s economy: an unemployment rate that has increased in the last five years, reaching figures close to 9%.
These levels correspond to the low presence of union activity, to higher wages than in the continent or in other countries of the region and at the disposal of authorized quotas of unqualified migrant workers. In the same way, the fundamental role provided by re -exports, which appear 90% in later years, is highlighted. And it is at this point, where it is possible. When considering the structure of foreign trade in relation to the Directorate of External Commerce.
The importance of China and the United States in the Reexportations and Exports Trade, and that of other countries in the region in the provision of imports can be appreciated. For example, considering the years 2002 and 2003, almost 40% of the re -exports and 31% of exports were directed to China, while almost 44% of imports had that origin. For the United States, figures are almost 20% of re -exports, 30% of domestic exports and 5% of imports. Important regional suppliers for Hong Kong are Japan with 11%, Taiwan with 7%, Singapore and Korea with 5%, and Malaysia with 2%.
conclusion
This important relationship from China and Hong Kong with the countries in the area is considered sensitive when future evolution or economic adjustments is discussed, recommending caution in the adoption of economic policy measures. The analysis of China’s commercial results shows another perspective of Hong Kong’s importance in relation to his foreign trade. Among the main export -based directions that have its Hong Kong domain, are the United States, China, Japan, Germany and the United Kingdom. And in turn, suppliers in terms of imports in later years have been;United States, China, Korea, Japan and Singapore.
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